Iran’s National Tax Administration(INTA) has made an important announcement for crypto miners in the country. Crypto mining in Iran will be eligible for tax exemption if the miners repatriate their overseas earnings.
INTA has introduced a repatriation tax exemption which will be similar to the one it has offered to non-oil exporters. According to the INTA regulations, crypto mining is a taxable business, like other industrial activities. It should thus follow the requirements of the Central Bank of Iran in repatriating their overseas earnings. Also, the special tax regulations regarding the location of industrial units and their distance from major cities will not apply to crypto mining units.
According to the crypto miners in Iran, the government has a concern over the disproportion of capital flight. They, however, claim that most of their revenues go back into the production cycle. In Iran, cryptocurrency mining is a lucrative business. This is because of the availability of extremely low electricity prices. The cost of each kilowatt-hour is $0.05 cents, whereas it costs $0.12 on an average in the US and sometimes it even goes to $0.33. However, the electricity prices will not be on the basis of average power export rates in rials for the crypto miners as the source says.
When it comes to cryptocurrency, Iran had to face a lot of scrutinies. In July, a senior official of the Central Bank of Iran Nasser Hakimi had warned that trading Bitcoin in Iran is illegal. This is because of the illegal crypto mining that was happening in the country. However, the Government legalized crypto mining in Iran and regulated it within its existing legal structure.